Ruth Ibikunle
Transactions on the floor of the Nigerian Exchange on Wednesday closed on a bullish note with a significant growth of 2.90%. Year to date, the market has returned 8.23% with the All Share Index and Market Capitalisation at 46,232.37 points and N25.182 trillion respectively.
The MD/CEO of APT Securities and Funds Limited, Mallam Garba Kurfi in a chat with Stockswatch gave insight on the current uptrend in the stock market.
Excerpts:
The stock market on Wednesday closed on a bullish note with 2.90% growth. What is driving this current positive vibration?
The rising stock prices at this time is not surprising to us in view of the Q3 results performance and coming end of the year. Most of the PFAs and Private Equity Investors will like to close the year with a positive valuation of their Portfolios.
• CBN has increased Monetary Policy Rate (MPR) to 16.5%. How would this impact the economy and the capital market?
CBN increased MPR to 16.50% by 100 Basis point. It’s seem it wants to follow up the rise of Inflation, from May to date MPR increased by 5% compared with an inflation increase for same period by same 5%. This will increase the cost of funds which will reduce production, will increase unemployment and reduce productivities and reduce GDP. It will divert more funds into Fixed Income.
• What is driving the price of BUA Cement?
BUA CEMENT is driven by Good performance and the expectation that he may give bonus in view of the facts there is an outstanding unissued share which he may cancel or give bonus shares.
- Is Dangote Cement a good BUY at N262.3?
At the current price is good to sell Dangote Cement.
• What are the possibilities in Vitafoam, Transcorp, Access, Guinness and Zenith Bank?
The Vitaform year end result for the month end September 2022 is expected at any time from now. Transcorp, Access and ZENITH BANK are good buy.
Transcorp, Access and ZENITH are underpriced. They have the potential to rise more. While for GUINNESS based on the Q2 result I do not see much rise in the price but good to sell.